Wheat Climbs on Improved Demand From Importers; Soy, Corn RallyJeff Wilson and Whitney McFerron
Wheat rose the most in three weeks on signs that demand is increasing from importers including Egypt, the world’s top buyer. Soybeans and corn also gained.
Egypt agreed to purchase 240,000 metric tons in a tender yesterday from suppliers in Romania and Ukraine. Japan said yesterday it will resume importing U.S. western white-wheat after it banned shipments in May following the discovery of an unapproved gene-altered crop in Oregon. Since June 1, the U.S. has sold or shipped 12.3 million tons of the grain, up 45 percent from a year earlier, government data show.
“Wheat is moving higher on optimism about global export demand,” Shawn McCambridge, senior grain analyst for Jefferies Bache LLC in Chicago, said in a telephone interview. “Importers are looking to build some inventories.”
Wheat futures for delivery in September increased 1.4 percent to close at $6.6425 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain since July 9. The decline pared the gain in July to 1 percent, after touching a 13-month low of $6.48 on July 25.
China also has stepped up acquisitions of U.S. supplies after prices slumped and wet, cold weather damaged yields and crop quality in the Asian country, McCambridge said. The nation’s imports may reach 12 million tons this year, above the 8.5 million forecast by the U.S. Department of Agriculture on July 11, he said.
Soybean futures for delivery in November rose 0.3 percent to $12.0625 a bushel, after touching $11.9425, the lowest for a most-active contract since January 2012. The most-active contract fell 3.7 percent this month.
U.S. exporters sold 410,000 tons of soybeans to unknown buyers, the USDA said in separate reports the past two days.
Corn futures for delivery in December gained 0.3 percent to $4.79 a bushel, paring this month’s decline to 6.3 percent after cool weather boosted pollination across the Midwest.
Rain yesterday in the central Midwest was more than some forecasters expected, with some areas getting 1 inch (2.5 centimeters), Commodity Weather Group said today in a report. The USDA projects the U.S. corn and soybean harvests will be the biggest ever this year.